SRC board considers its options to fund multipurpose facility

Faced with an increase in expenses for a multipurpose facility project, the Spoon River College Board of Trustees discussed its options for funding at its meeting Wednesday in Canton.

SRC officials have been in the process of planning construction for a 26,000-square-foot facility for the Canton campus, complete with a gymnasium, an exercise area, locker rooms, a concession stand and offices for the athletic department.

The original estimates for the project were $7 million, with $4 million coming from state funds and $3 million from the college. SRC recently bonded $4.3 million, with $800,000 for technology upgrades, $3 million for the facility and an extra $500,000 as a financial cushion.

Because construction of the facility will utilize state funding, the Capital Development Board has been overseeing the project and bidding process.

At the board's meeting Wednesday, Bruce Maxey, of BLDD Architects, discussed the construction bid and costs for the new building. BLDD was hired as the architects for the new facility.

Total funds available for the project is $7,027,100, with the state being responsible for $4 million. About $6,284,964 is available for construction with $742,136 for other project costs such as artwork, office furniture and sound systems.

The contractor bids for plumbing, heating and other areas amount to $6,063,140, leaving $221,824 left over.

However, Maxey noted CDB requires a 5-percent contingency on project, as well as any additions. The purpose of the contingency is to cover any unknown conditions that may occur during the construction process.

About $303,157 will be needed to cover the contingency cost of the entire project. With the remaining money left over from the contractor bids, SRC will need to supply an additional $81,333 before CDB will allow the project to proceed.

According to Maxey, the college can either transfer the funds to CDB now from a reserve or temporarily take the funds from the other project costs category to be replenished later. Also, SRC can send CDB a letter stating that if and when the contingency funds will be needed, the college will provide them. The project would proceed as is in either scenario.

The other option, Maxey said, is to redesign and rebid the project in order to cut construction costs. Yet, if the board proceeded with this option, it would be at least another 12 weeks for the bidding process.

Brett Stoller, vice president of administrative services, noted that even with the redesign option, the bids could come in higher and the project could potentially end up costing more than it does now.

Trustees seemed to agree that redesigning and rebidding the project would not be a viable option.

SRC President Curt Oldfield said the college bonded the extra $500,000 just in case the project ended up costing more than expected. He recommended the college write the letter and use those funds as contingency if needed.

Any left over money will be used to replace the roof at the Macomb campus' East Jackson Street building, he said, as well as capital projects.

Maxey added that any contingency funds not used will be returned to SRC, but about six months after the multipurpose facility is completed.

In addition, board members also addressed alternatives, or additional features, for the new building.

These alternatives include a ceiling divider for the gym, which will split the gym to allow multiple activities to occur at one time, as well as a concrete plaza, acoustic tiles, floor tiles and wall tiles.

The estimated cost for all five of the alternatives and the contingency is $148,188.

Oldfield said he believes SRC has enough bond funds to cover the multipurpose facility and roof replacement in Macomb.

With the new cost of the alternatives and contingency, the total cost of the multipurpose facility project is approximately $3,150,000.

"I think, at this point, we should just bite the bullet and get this done," Trustee Gayle Strode Blodgett said. Other board members seemed to agree.

Chairman Dave Maguire said the board will proceed with sending the letter to CDB stating the college will provide the contingency funds as needed.

Other business:

-Trustees approved a purchase order, not to exceed $150,000, for computer equipment, the funds of which will be available through the lifecycle fund

-A bargaining labor unit contract between the college and its faculty was tabled for a later meeting

Reach Hannah Schrodt via email at hschrodt@cantondailyledger.com, or follow her on Twitter @HannahSchrodt.

-The board also approved salary increases of 2.75 percent for professional support and administrative employees not in a bargaining agreement

-The board approved a prevailing wage resolution, as well as appointment of a college attorney, appointment of an employment law consultant and an insurance contract for the new fiscal year

-Trustee Phil Murphy was designated to serve on the Spoon River College Foundation Board, with Trustee Linda Bulter as an alternate

-The board's semi-annual planning retreat has been scheduled for 9 a.m. to 3 p.m. Tuesday, July 8, in Macomb.

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